Just Lifetime Income In A Living Annuity
One way to better manage the higher risk of a living annuity and the rigidity of a guaranteed life annuity is to use a blended annuity, a product that has the best of both in one. A blended annuity allows you to balance a sustainable income for life and discretionary living annuity investments – all in a single product. Blending offers the ability to partially annuitise inside the living annuity. You can balance the various trade-offs by switching additional tranches into the guaranteed life annuity component when you need to, and build an optimal portfolio over time.
Blending inside partner living annuities
Blended living annuities offer a guaranteed life annuity (JuLI) as an investment portfolio inside a living annuity’s legal structure. Just SA currently provides the lifetime income portfolio in five partner living annuities. Features of both products are available in one solution.
Research shows that a combination of a living annuity and a guaranteed life annuity is an optimal solution, compared to either product on its own.
Benefits of including JuLI as a portfolio inside a living annuity:
- The combination improves the sustainability of a living annuity
- You can secure an amount to cover essential expenses and provide a safety net
- It allows for a more aggressive investment strategy to be adopted on the non-JuLI assets
- It allows an optimal balance between income security, flexibility, and capital legacy
How to blend
Just has developed JustBlend, a web-based tool for financial advisers. JustBlend allows registered users to compare blends and can generate a quote immediately.
Projections show the impact of different blend percentages on income and capital over time, which aims to help advisers and clients decide how much to allocate to the JuLI portfolio.
How to get a quote
- As a registered adviser, you can request a quote for the Just Lifetime Income portion directly in JustBlend. Please contact us to request registration details.
- You may also need to provide:
- Underwriting is optional and can improve the annuity rate. This is a 20-minute phone call to your client, for which we will need a telephone number and a convenient time to call
*Depending on the partner’s living annuity arrangement
Need more information?
Please contact us if you'd like to discuss this in more detail with one of our consultants or if you'd like to request a quote.
A reminder that JustTools allows registered financial advisers to request quotes direct to your inbox.
If you’re not registered, please contact us and we will gladly assist you.